Question

A company purchased $11,000 of merchandise on June 15 with terms of 3/10, n/45, and FOB shipping point. The freight charge, $1,000, was added to the invoice amount. On June 20, it returned $1,600 of that merchandise. On June 24, it paid the balance owed for the merchandise taking any discount it is entitled to. The cash paid on June 24 equals:

Answer 1

$10,215

Step-by-step explanation:

Amount

Purchase 11,100

Less; purchase return -1,600

Net purchase 9,500

Less: Purchase discount (9500*3%) -285

9,215

Freight in 1,000

Cash Amount paid $10,215